The U.S. Small Business Administration announced it has resumed taking new applications for pandemic-related disaster loans from all eligible small businesses and nonprofits.
The SBA shut down its online application portal for the Economic Injury Disaster Loan (EIDL) program on April 16 after exhausting the $17 billion authorized by Congress. The agency didn’t reopen the portal when an additional $60 billion was authorized, saying more time was needed to process the more than 5 million applications received.
SBA is now accepting applications from all businesses if they have 500 or fewer employees and have been hurt by economic fallout from the the COVID-19 pandemic.
Loans are for up to $2 million per applicant and are funded by the U.S. Department of Treasury. The interest rate is 3.75% for businesses and 2.75% for nonprofits, with up to a 30-year term. The first payment can be deferred for a year.
Small businesses can be approved for both an EIDL and PPP loan as long as the funds are used for different purposes. EIDL loans can be used for a wider range of expenses impacted by COVID-19. The deadline to apply for an EIDL loan is Dec. 31 but sooner is better because funds could run out. (The last day to apply for the PPP is June 30.)
Small businesses can also apply for EIDL grants up to $10,000, the SBA said.
To apply for an EIDL loan and grant, go to covid19relief.sba.gov/#/
“With the reopening of the EIDL assistance and EIDL Advance application portal to all new applicants, additional small businesses and nonprofits will be able to receive these long-term, low-interest loans and emergency grants,” said SBA administrator Jovita Carranza in a statement.
Nationwide, as of June 1, more than $90 billion in EIDL loans have been approved, according to the SBA.
The Florida SBDC at FIU, the small business development center within the university’s College of Business, has helped owners in Miami-Dade and Monroe counties navigate disaster assistance programs such as the EIDL on their road to recovery. The center’s consultants guide applicants to the best resources for them, explain the eligibility criteria and assist with applications as well as help them determine how to put the funds to their best use and ensure they have the right strategy to grow again when conditions improve.
As of June 2, 2020, the FSBDC had helped local businesses obtain $24.1 million in COVID-19 assistance, including $15.2 million in SBA Paycheck Protection Program (PPP) funds, $4.2 million in SBA Economic Injury Disaster Loans (EIDL), and $4.5 million in Florida Small Business Emergency Bridge Loans.
“As phased re-openings have begun in Miami-Dade and the Keys, these funds have been essential, along with ongoing guidance on business strategies, to ensure successful re-openings for our small business clients,” said Brian Van Hook, regional director of the Florida SBDC at FIU.